Vietnam Car Rental Market

Vietnam Car Rental Market Size and Share:

The Vietnam car rental market size was valued at USD 335.60 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 942.68 Million by 2033, exhibiting a CAGR of 12.16% during 2025-2033. Southern Vietnam currently dominates the market, holding a significant market share of 35.6% in 2024. The market is fueled by rapid urbanization, growing tourism, and the rise of disposable income, which feeds into demand for convenient and adaptable transport. Traffic congestion and insufficient parking in urban areas like Hanoi and Ho Chi Minh City make the rental option over purchasing more desirable for the country's increasing middle class. Foreign direct investment, growing business travel and government policies aimed at enhancing infrastructure and tourist support further drive demand. Cultural transformations toward shared mobility and internet-based booking platforms also increase market accessibility, making the Vietnam car rental market share extremely dynamic and competitive.

Vietnam's fast-growing cityscape has emerged as a driving force for the car rental industry, particularly in Da Nang, Hanoi, and Ho Chi Minh City. As urban areas grow, so does the need for easy and flexible mobility options, particularly among middle-class customers and tourists looking for control over travel arrangements. As opposed to the situation in much of the Western world, where public transportation systems are widespread and ingrained in the culture of commuting, Vietnamese cities are only beginning to develop their transit systems. This lag offers an immense opportunity for car rentals, which can provide both a short- and long-term mobility option. In addition, the government of Vietnam has actively promoted tourism, working to attract foreign investment into hospitality and infrastructure. This combined with growing independent travel has seen a significant growth in self-drive tourism, where car rental becomes more than an amenity but a requisite for visiting remote but culturally deep destinations like Ha Giang, the Central Highlands, or the Mekong Delta.

According to the Vietnam car rental market analysis, cultural practices and state policies contribute uniquely to the dynamics of the industry. In contrast to a significant number of Western economies where leasing and renting are prevalent personal mobility options, Vietnamese consumers have historically favored car ownership as a long-term investment and symbol of status. With increasing urban traffic congestion and evolving generational perceptions, young Vietnamese consumers are now becoming more accepting of short-term access rather than ownership. This change of culture is slowly breaking open the market for newer business models such as car-sharing and app-based rentals. In addition, Vietnam's regulatory regime has started to accommodate such transformations, with more streamlined guidelines for foreign drivers, enhanced road infrastructure, and e-documentation of rental contracts. In contrast to some other Southeast Asian nations, Vietnam is also focused on unique standards for licensing and safety checks, which makes the market moderately formalized and trustworthy, especially in tier-one cities. These regional variations are creating a more organized and reliable environment, and as a result, they are bringing in both home and foreign rental firms.

Vietnam Car Rental Market Trends:

Impetus of Tourism and Increasing Foreign Investment

The Vietnamese car rental industry is witnessing significant momentum propelled by the booming tourism sector and a spate of foreign direct investment. Vietnam has become a leading destination for overseas tourists, lured by its varied landscapes—ranging from the UNESCO‐designated Halong Bay and Sapa terraced rice fields to the vibrant cities of Hanoi and Ho Chi Minh City. As of March 31, 2025, recorded foreign direct investment (FDI) totaled USD 10.98 Billion, up 34.7% year over year. This fueled the development of new hotels, resorts, and transportation hubs that depend on relationships with rental car companies to facilitate guest mobility, according to the National Statistics Office. This tourist influx has generated a healthy demand for rental mobility as a cost-effective and convenient means of discovering the country. Concurrently, as Vietnam keeps drawing foreign investors in diversified industry sectors including manufacturing, real estate, and hospitality, expat business travelers and investors depend on rental car services for corporate travel and relocation arrangements. It is the dominance of long‐term rental agreements linked with project assignments by multinationals that renders the Vietnamese context distinct from other Southeast Asian markets where the trend is less pronounced. The intersection of inbound tourism and FDI has thus triggered growth in both short-term and longer-term cars available for rent, injecting more varied fleets, multilingual service options, and infrastructure—such as combined rental centers close to international airports in Da Nang or Noi Bai—that are designed to specifically address global travel needs, which further fuels Vietnam car rental market growth.

Increase in Sightseeing and Local Travel Rentals

Local tourism and domestic travel are a fast-growing niche in Vietnam's automobile rental market, with tourists increasingly on the lookout for renting cars to see the nation on their own terms. Data from the Ministry of Culture, Sports and Tourism show international arrivals hit nearly 2.1 million in January 2025, up 18.5% from the prior month and 36.9% from January 2024. Compared to destinations where public transportation or organized tours are the norm, Vietnam's coastal roads of the Hai Van Pass, rural mountain loops through Ha Giang province, and countless other serene routes between national parks or beaches are best explored by car. Travelers prefer smaller sedans, SUVs, and even motorhomes to travel between historic cultural sites in Hue, boutique hotels on the central coast, or the floating markets of the Mekong Delta. The most noteworthy trend regionally is the rise of self-drive packages designed for foreign drivers, complete with computerized maps and bilingual assistance, showing Vietnam's effort to modernize travel infrastructure and amenities. In Phnom Penh or Bangkok, visitors may have to depend mostly on buses or tuk‑tuks, but in Vietnam, there is a clearly growing demand for private rental cars on reaching off‑the‑beaten‑path locations. Local companies are also joining hands with homestays or rural eco‑lodges to provide door‑to‑door travel, and car rentals are now a part of experiential travel itineraries. This shift toward self‑driven exploration is transforming the Vietnam rental market outlook from urban mobility into regionally differentiated travel experiences specific to Vietnam.

Urbanization, Lifestyle Demands, and Domestic Rental Adoption

Among Vietnamese residents, especially in urban areas such as Hanoi, Ho Chi Minh City, and Da Nang, there is a significant shift toward renting cars as an urban adaptation to fast development and mounting daily demands. Urbanization is reconfiguring mobility demand, as crowded traffic arteries, scarce parking in compact neighborhoods, and shifting family compositions have rendered car ownership less convenient for most middle‑income households. By contrast, casual rental arrangements—hourly to monthly plans—are increasingly gaining acceptance. Vietnamese professionals, particularly young urbanites, value the convenience of renting a car on weekends for out‑of‑town excursions or intercity errands, without maintenance, depreciation, or permit hassles. Combined with the increasing speed of life—longer work hours, multiple roles between home and workplace, and a desire for hassle‑free travel—rentals provide crucial flexibility. Another local aspect is that numerous car rental companies are providing end‑to‑end digital booking platforms with apps in Vietnamese and driver services managing city‑based traffic regulations, like restricted entry zones in inner‑district areas. This customized, flexible service is one that addresses region-specific urban pressures and cultural norms of flexibility and family convenience. Hence, the in-home consumer market is emerging as a key pillar of market growth, supporting the transition away from rental models specifically designed for tourists only, to a hybrid market aimed at both visitors and Vietnamese daily users, which further contributes to the increase in Vietnam car rental market demand.

Vietnam Car Rental Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam car rental market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on booking type, rental duration, and application type.

Analysis by Booking Type:

• Online
• Offline

Online stands as the largest component in 2024, holding around 62.2% of the market. Online reservation has become the most prevalent channel in Vietnam's car rental market, building on extensive use of smartphones and rapidly improving internet penetration. Across Ho Chi Minh City to smaller seaside towns in Southern Vietnam, both domestic and international travelers increasingly use mobile-optimized websites and platforms to make a convenient booking. This change is abetted by domestic car rental firms integrating with local travel tech platforms, like major e-wallets and ride-hailing platforms, to facilitate smooth reservation, payment, and support in Vietnamese and English. The widespread booking of one-day self-drive packages for day trips to neighboring sites such as the Cu Chi Tunnels or Bình Quới Village—packages almost solely booked online, are unique to Vietnam. In addition, online platforms tend to promote added-value regional offerings—like bilingual navigation support, toll card installation, and driver access—customized to local regulations. The proliferation of online booking encourages transparent costs and greater market competition and increases user trust by providing real-time availability, electronic certification of vehicle quality, and cashless payment, stimulating development and innovation in regional car rental business.

Analysis by Rental Duration:

• Short-Term
• Long-Term

Short-term leads the market with around 73.8% of market share in 2024. Short-term rentals irrefutably dominate the Vietnam rental car industry, capturing tourists' preference for flexibility when they travel to dynamic urban centers like Da Nang, Hanoi, and Ho Chi Minh City, and picturesque rural areas like the Mekong Delta or Central Highlands. With most mid‑stay journeys being no more than a few days long, rental companies customize compact sedans, SUVs, or environmentally‑friendly vehicles for daily and hourly rentals. Vietnamese rental companies increasingly facilitate this demand through easy online reservations, day rental packages with bilingual customer service, and added options such as domestic toll cards and local driving guides. Special regional attributes—such as one-day city tours to cultural sites (e.g., Cu Chi Tunnels, Sơn Trà Peninsula) or regional loops on the coastal roads—are generally packaged uniquely as short-term rentals. This segment also resonates with business travelers and expats who want local transportation without the long-term liabilities of leasing or ownership. Several of these Vietnam car rental market trends result in a short-term model which generates volume and utilization throughout Vietnam's car rental network, serving tourists and urban dwellers alike while generating fast turnover and operational flexibility.

Analysis by Application Type:

• Tourism
• Commuting

Tourism leads the market with around 77.2% of market share in 2024. Tourism is at the heart of Vietnam's car rental industry, leading demand over all other use categories as both local and foreign visitors increasingly opt for self-driving experiences. With attractions ranging from the limestone karsts of Halong Bay to the heritage streets of Hoi An and the underground maze of the Cu Chi Tunnels, travelers see enormous value in renting cars that offer the flexibility to drive through both famous sites and secluded local secrets. In contrast to package tours or public transport, rental cars give visitors the autonomy to design their schedule—at sunrise visitation in the Mekong Delta to hill tribe interactions in Sapa—without timing restrictions. Domestic car rental operators have adapted by designing tourism-oriented packages, including bilingual assistance, pre-loaded navigation with tourist spots, and regional insurance packages appropriate for cross-provincial journeys. This shift toward tourism also encourages partnerships among rental agencies, hotels, tour operators, and eco-lodges, providing package deals like guided tours or cultural site passes. With Vietnam focusing on increasing tourism infrastructure, the tourism application segment is still the pillar of the nation's rental market, giving travelers rich experience travel combined perfectly with convenience and independence.

Regional Analysis:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

In 2024, Southern Vietnam accounted for the largest market share of over 35.6%. Southern Vietnam, centered on Ho Chi Minh City and radiating out into the Mekong Delta, controls the Vietnam car rental market forecast to a large extent. Being the country's most populous economic center, Ho Chi Minh City creates strong demand from businesspeople, foreigners and travelers using the city as a hub for the traveling-on to visit southern attractions such as the Cu Chi Tunnels and the Mekong Delta—regions most easily visited by rented car. The infrastructure boom in this region, including the building of Long Thanh International Airport and widening highways in Đồng Nai and Bình Dương, further drives the popularity of car rentals. With enhanced connectivity from the My Thuan Bridge and improved highways connecting Cần Thơ, Mỹ Tho, and Vũng Tàu, self-driven and chauffeur-driven vehicles have become a necessity in leisure and logistics. Additionally, local players providing English-speaking drivers and customized Mekong Delta tour packages highlight the region's special status as Vietnam's top car rental market leader catering to varied customers in tourism, business, and domestic travel.

Competitive Landscape:

Major players in Vietnam's car rental market are adopting a series of strategic initiatives to propel expansion, streamline operations, and address increasing consumer demands. Top homegrown and foreign players are boosting the size of their vehicle fleets to incorporate environmentally friendly, premium, and utility models, addressing various customer segments from tourists and business visitors to residents. Digitalization leads the way, with numerous providers introducing easy-to-use mobile websites and applications providing instant vehicle availability, honest pricing, and effortless booking and payment. Providers are also making investments in customer experience upgrades such as 24/7 customer support, multilingual support, and customized travel packages to regional hotspots such as the Mekong Delta and Da Nang. Strategic alliances with travel agencies, airports, and hotels further increase their market penetration. Value-added services like GPS navigation in local languages, insurance, and chauffeur services, particularly for foreign customers who are not aware of Vietnamese roads, are being provided by some players. Long-term corporate rental solutions are also being marketed to address the mobility requirement of multinational companies operating in Vietnam's expanding industrial and commercial bases. Through technology, fleet diversity, and service customization, these industry leaders are enhancing accessibility and raising the bar for convenience, safety, and customer satisfaction in the rental system.

The report provides a comprehensive analysis of the competitive landscape in the Vietnam car rental market with detailed profiles of all major companies, including:

Latest News and Developments:

• In July 2024, Lotte Rental Company, part of South Korea’s Lotte Group multinational, revealed its intentions to penetrate the Vietnamese car rental market in the latter half of the year. Founded in 2007, the company operates as a business-to-business entity in Vietnam under the name Lotte Rental (Vietnam), providing commuter buses and vehicle rental services ranging from short to long-term for international firms. The firm presently operates 1,300 vehicles and has locations in Hanoi, Ho Chi Minh City, and Da Nang.
• In January 2025, Leading Việtnam's electric ride-hailing company, Xanh SM, announced plans to transform mobility with zero-emission VinFast cars, cutting CO2 by over 100,000 tons in just 18 months. The company also plans to expand globally through collaborations and AWS cloud technology. The CEO of Xanh SM, Nguyễn Văn Thanh, spoke to the media about the company's strategy of using AWS cloud technology and establishing strategic partnerships to grow operations and promote ecologically friendly, sustainable transportation.
• In October 2023, in order to prepare for the introduction of its electric taxi service under the Green SM brand, Vietnam's Smart and Green Mobility JSC. GSM imported 150 VinFast electric cars to the Lao market. The event marked a critical turning point in its development into a well-known local and global ride-hailing business. This noteworthy occasion further demonstrated GSM's commitment to promoting the use of electric vehicles by consumers.

Vietnam Car Rental Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam car rental market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Vietnam car rental market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam car rental industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.